Tag Archives: Consumerism

Mattress Firm’s business not so firm

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By ADAM SPECTOR

Mattress Firm has filed for Chapter 11 bankruptcy last Friday. More than 200 stores are confirmed to close and up to 700 of its 3,230 stores could close.

The most common reason attributed to this news is that the business expanded too fast and that it had too many stores that were in close proximity to one another. As mentioned last week in this blog space, in one area of Austin, Texas, there are a reported six Mattress Firms within a square mile of one another. In High Point, N.C., there are two Mattress Firms within less than 250 feet of one another.

Nearly 43 percent of Mattress Firm stores are located within one mile of another one, according to financial data firm Thinknum.

As insane as this concept may sound, the idea of having many stores close together has worked for various chain restaurants, hotels, coffee shops and pharmacies. The difference between those businesses and Mattress Firm is that people don’t buy new mattresses as often as they frequent the other businesses.

“I think they’re humbled,” said Seth Basham, an analyst with Los Angeles-based Wedbush Securities in an interview with the Houston Chronicle. “They grew far too fast with ambitions to be a national retailer.”

Another attribution to Mattress Firm’s bankruptcy other than its insane number of stores is rising number of online mattress retailers such as Purple, Casper and Leesa. The selling point of many of these online retailers is that they are able to sell mattresses of supposedly similar quality to name brands found in stores for lower prices than those found at stores because they are being sold directly by the manufacturer.

Even though plenty of news sources are now explaining how Mattress Firm’s strategy of having a store in every corner is what led to its bankruptcy and shutting down of stores, the media never questioned their improbable plan in the past. As mentioned last week, very few people actually buy a new mattress every five to seven years as retailers recommend. Buying a mattress is a significant purchase for most people that happens less than twice each decade.

If someone is planning on buying a mattress, would they really mind driving an extra mile if there was one less mattress store?

FDA opposes plant-based milks

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By ANABELLA ZAMBRANO

As people become more interested in plant-based diets, veganism is now the most talked about way of eating. Not only is the healthiest, if eaten right, but it also has thrived in market sales with vegan alternatives such as vegan Chao Cheese, Beyond Meat Burgers, and plant based milk.

Earlier this year, the dairy industry is troubled with a drop of sales. People are choosing alternatives to dairy whether it is for lactose intolerance reason, taste and simply just preference. The FDA argues consumers are being misled into buying milk alternatives since those alternatives have the word “milk” on their label.

According to Veganuary.com, the dairy industry has been in trouble for a while now due to milk alternatives. But until recently a bill was passed known as the Dairy Pride Act, which as it states, aims to “protect the integrity of dairy products by enforcing existing labeling requirements” with the purpose to enforce a new law against non-dairy products being labeled in the descriptor like milk and cheese with the claim that this is confusing to the consumer.

According to the U.S. Department of Agriculture (USDA), sales of almond milk shot up over 250 percent between 2011 and 2016. Meanwhile, consumption of dairy milk has dropped 37 percent since the 1970s.

It is not a matter of consumers being confused. For a while, studies have shown that consuming dairy raises risks of osteoporosis and raises chances of having breast cancer for about 41 percent according to Cowspiracy.com.

Although it is not for sure whether or not plant-based milks will be limited to remain described as “milk,” it is no doubt that advertising affects what people consume. If it becomes popular, it will most probably end up on the news.

But when it comes down to deciding whether dairy will regain their sales or not, this milk war has become one of the hottest topics to talk about through YouTube, Instagram, and it has become an interesting thing to decide if consumers are being mislead, which I doubt.

Through out the news outlets, not enough is covered on the topic that dairy does increase risk of death by 93 percent, according to a study by the British Medical Journal. Or just the fact that milk from a cow is not healthy to consume.

But as long as it is about the labeling controversy, it will be more covered in the news.

California bans animal testing

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By ANABELLA ZAMBRANO

California is now first in line to pass the “Cruelty Free Cosmetics Act” which will make it illegal for any products tested on animals to be sold in the state. These products include make up brands, house cleaning detergents, medicine, air refreshers and even food.

Companies like Maybelline, NARS, Benefit Cosmetics and cleaning detergent TIDE are among the hundreds of companies who test on animals but will not make a direct statement admitting it. Even though they don’t test on animals within the U.S., they still are guilty of these practices because they still sell in mainland China.

By law, China requires animal testing for foreign cosmetics companies. Make up brand NARS was cruelty-free until last year, in 2017, when it decided to sell in China to expand its brand and raise sales.

These testing procedures range from injecting the product in a rabbit’s eye with no pain killers, beagle puppies forced to inhale toxic chemicals or rats eating certain products and study how they react. It is illegal for people to take pictures of these procedures or even document them. Lack of coverage or news reports have prevented this bill to be passed.

According to VegNews.com, The California Cruelty-Free Cosmetics Act (SB 1249) was unanimously passed with a vote of 80-0 in the state assembly. Sen. Cathleen Galliani sponsored the bill and it will officially become law on Jan. 1, 2020.

“I’m proud of California lawmakers for moving science, industry, and ethics forward today,” Galliani said.

The cruelty-free controversy would not even be happening if it wasn’t for social media. Through Instagram, Twitter and Facebook groups numerous animal activists and animal lovers are the one’s who brought this problem to the public eye.

Animal testing is something that is highly protected by powerful make up brands and they have tried to hide their animal practices to the consumer.

Saks credit card user data hacked

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By KATHERINE CERAVOLO

Saks Fifth Avenue and Lord & Taylor, which are owned by Hudson’s Bay Co., were both reportedly hacked. Those affected include more than five million credit and debit card clients of these stores. Hudson’s Bay Co., has responded and stated it is working to solve the issue. The company has also declared it will compensate those affected with free identity protection services and web monitoring of the credit card information.

Gemini Advisory, a cybersecurity firm, explained that the hackers, known as JokerStash, took the data and put it up for sale on the dark web, causing this scandal to be the biggest attack on retail chains yet. The most cases of stolen information were in the New York and New Jersey locations of Saks and Lord & Taylor.

How this happened is the real question. According to the Gemini Advisory, the hackers installed unique computer codes into cash registers, sending every in-store purchaser’s information to their own computers. This explanation may be estimated because only in-store purchasers were affected while the online shoppers weren’t.

The news media are explaining what steps will be taken to ensure customer relationships and to fix the reputation of feeling safe to purchase at these megastores. The issue here is the fact that the hacking has supposedly been occurring for a year now. Why has this been able to happen? Focusing on the fact that fraudulent charges are probably unlikely, considering the purchasers of these stores buy expensive items, what are customers supposed to do when their identity is compromised?

The media need to inform customers of what is going on, as Hudson’s Bay Company is continuously investigating and enforcing regulations to prevent future situations and to keep customers’ trust. Providing a change in cybersecurity and communicating with customers is the best step to take for now.

Keurig, Dr. Pepper unite for $18.7 billion

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By KATHERINE CERAVOLO

On Jan. 29, the largest soda deal ever became official. Keurig and Dr. Pepper Snapple teamed up and will now be called Keurig Dr. Pepper.

Keurig, whose corporate family already includes Panera Bread, Krispy Kreme and Pete’s Coffee, will now expand to Dr. Pepper. This deal allows the soda company to become part of the sales and popularity of Keurig, the coffee brewers. The annual revenue of this deal will bring in about $11 billion.

The expansion of this beverage distribution network is portrayed to be a win-win for both sides. While Keurig has helpful relationships with Amazon.com Inc. and Best Buy Co., Dr. Pepper Snapple has the connections to beverage vendors and convenience stores.

With help from multiple sources, Keurig Green Mountain’s investors will own 87 percent of Keurig Dr. Pepper. As JAB Holdings Co. holds the deal as a reverse merger, this new combination of a company based on coffee and soda will boost market share for both industries. Since Keurig was the fourth-largest coffee company and Dr. Pepper was the third-largest soft-drink company in the U.S. in 2017, the influence on the market and the market shares will be worthwhile.

Keurig has had ties with Coca-Cola, which owned 17 percent stake in the business before JAB, resulting in the deal allowing Coca-Cola to gain about $25.5 million on the investment. Dr. Pepper Snapple was bought by Cadbury Schweppes in 1995 but was off the deal in 2008 when Mondelez bought Cadbury.

Helpful sources included in the legalities of the deal were BDT & Co., AFW LP, J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Skadden, Arps, Slate, Meagher & Flom LLP, Morgan, and Lewis & Bockius LLP. The lead financial advisor to Keurig was Goldman Sachs & Co. while Credit Suisse Group AG. advised Dr. Pepper Snapple.

So far the multi-billion dollar deal has concluded that investors in the soft-drink company will get $103.75 a share and retain about 13 percent of the combined entity.

Three restaurants shut down, 19 cited

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By ALEJANDRO GRANDA

Three Miami restaurants had enough roaches to be shut down for the day while eight were cited for live roaches and 11 others cited for dead ones.

Latin American Restaurant at 1590 Coral Way was closed for the day for having “seven plus live roaches found inside oven in cookline area,” “extreme amount of flies all around the kitchen area” and “slicer blade guard soiled with old food debris.” Customers also insisted on bottled water because there was an “accumulation of black/green mold-like substance” around the soda dispensing nozzles and the ice machine.

Wong’s on 12420 Biscayne Blvd., in North Miami, had two high priority violations, but one was the excess amount of roaches: “six live roaches on preparation (table) behind soy sauce box, six live roaches under preparation table, five in the reach in cooler gasket, two by hand washing sink, three on the oven door.”

Yumm Yumm 2000 Cafe Del Mar in Miami Beach, at 710 Washington Ave., #1, was the third and final location to be shut down for roaches, which could be spotted upon entering the front door: “Two live roaches observed, one by door frame at entrance of establishment, the other under soda fountain. Another live roach observed by chest freezer in back of restaurant. Another roach observed by telephone behind kitchen and one more in storage in the back of the restaurant. Another roach was observed under coffee machine.” Other violations include the handwash sink not accessible for employee use because of items stored in the sink, soiled/stained can opener blade and cutting boards, and an accumulation of black/green mold-like substance around the ice machine.

The Miami Herald does a great job reporting these nasty violations, showing readers to think twice before going to these restaurants and take caution if they decide to eat in them.

Inexpensive yacht rentals for ‘all’

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By ROXANNE YU

The countdown for summer has already commenced and we all know what that entails — spending more money for vacation destinations.

During this time of year travel plans are certainly one of the most discussed topics. It’s timely that The New York Times has just released an article in its travel section that promotes the idea of yacht vacations.

The article suggests that yachts could be affordable as long as one knows where to look, indicating that week-long charters are inexpensive and will only cost $5,000 or less.

There are a couple of yacht rental sites that the article links readers to, all of which could render to be useful to those interested.

Although the article was able to touch upon a relevant topic, it has certain limitations and flaws, starting with the title “Yacht Vacations: Not Just for the Rich.”

The title is misleading, as it infers that yacht vacations could well be afforded by every other person who belongs to lower hierarchical class of society. A price of $5,000 may well be affordable for the upper middle class of society, but this does not necessarily constitute the lower middle class, as well as those below this category.

The article, although informative, could have been more interesting if there was more content added to it. The purpose of the article is to inform the public about low yacht rental prices, placed a significant amount of attention towards boat charters, however, left out ideas on what one can possibly do in a yacht for an entire week.

The article could have been a lot more engaging if the writer included more information about yacht vacations, as the article was supposed to cater to those who have never really had the chance to experience and afford such luxury.

It could have also been more insightful if there were a number of sources who shared their own stories on how their yacht vacation turned out to be. This would have been able to help those who are seriously considering a yacht vacation.

As journalists, we often like to keep our published works straightforward in order to merit the full attention of the reader. It’s extremely hard to measure when an article is underdeveloped or not, but to our benefit it is better to report the entire story that includes additional facts rather than publish one that is half baked.

Is the iPhone 6 Plus bendable?

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By MICHELLE BERTRAN

It appears to be that iPhone 6 Plus users are complaining about their new phone being bent after keeping it in the pockets of their pants for a while, especially if you are wearing tight pants. Apple has not responded to this issue, according to CNNMoney.

People all over the world are posting pictures and comments in regard to this in the hashtag #BendGate. However, many of these images seem to be Photoshopped and last year, there were some reports of the 5s having the same problem, so this is nothing new to Apple.

Now the question is, if you have a $750 phone, why would you sit on it while it is in your pocket? Or should the phone be extremely durable (almost invincible) if that is the retail price?

I think it goes both ways. If I paid that much for a phone, I would take much better care of it and keep it in my purse, rather than in my tight jeans where it can easily slip out of my pocket (considering how big it is) or sit on it.

Meanwhile, for a phone that expensive, it shouldn’t be so sensitive to the point where one can easily bend it with one’s own two hands. But iPhone 6 Plus owners should take into consideration that this phone is made up of aluminum; a material that is rather flexible.

There was a video posted on YouTube by Unbox Therapy where it shows a man trying to bend the iPhone with his bare hands. The man on the video said that being able to bend the phone with your hands is a matter of strength, but definitely possible. In an email to CNNMoney he said, “Grab it in the middle with the glass facing out and give it everything you have, it’ll bend.”

Coke’s ad: Controversial or strategic?

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By VIVIAN BRAGA

The 2014 Super Bowl achieved a record of 111.5 million viewers, making it the most-watched event in the whole of the USA history.

During the event, Coca-Cola, just like any other company who has millions of dollars to spend in commercials that will last seconds, aired an ad with “America the Beautiful” sung in Spanish, Tagalog, Mandarin, Hindi, Hebrew, Keres, French and Arabic.

If you are an open-minded, well-cultured person, you must be asking yourself: “Why is this so controversial, what is the big deal?”

But if you are heartless and emotionless, you must be infuriated at the fact that it was sung in every language but English.

Indeed, there are many things not like about Coke, but their idea that the United States is a multi-cultured nation should definitely not be of them.

The ad became so controversial, hash tags saying #fuckcoke trending on Twitter for hours.

According to the media coverage post, these were the tweets considered to be “normal responses” from the average American.

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But, what if it was all a marketing strategy?

Using a weighted average of total views, subscriber growth, likeability and velocity, Touchstorm has actually worked out that the Coca-Cola ad was the most effective ad of the whole Super Bowl event.

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And until today, according to E-consultancy, the Coca- Cola ad has been No. 1 for a whole consecutive week.

Whilst other brands released “sneak peaks” of their Super Bowl ad a day before its a release, Coca Cola chose not to do it.

Maybe because management feared an early revolt against it or maybe because they were just waiting for the big day. But #Americaisbeautiful ended achieving more views on its initial upload than any other ad.

So maybe the advert is not as controversial as it seems. Whilst media coverage has constantly repeating about people’s constant revolt against the ad, numbers show the message has been received more positively than what the extreme conservative politics and media has made us believe.

A multimillion-dollar media holiday

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By NICOLE LOPEZ-ALVAR

When most people think of Valentine’s Day, the images that come to mind are chocolates, flowers, cards, and candlelit dinners—all manufactured images by advertisers and media companies that have perfected their techniques of triggering viewers’ tear ducts into consumerism. Once the holiday approaches, people are compelled to be suddenly generous and search for the ideal gift for loved ones, and it comes at a price.

The average person spends about $130 on Valentine’s Day each year, with men spending roughly double the amount of women. “The average man plans to shell out $135.35 to impress the people in his life while women only expect to spend $72.28,” stated a survey.

Advertisements continuously promote manufactured love—filled with clichéd greeting cards and abundant heart-shaped chocolates. Many people feel obligated by these unrealistic expectations portrayed through media to buy gifts, reserve dinners at fancy restaurants, and send Valentine cards to loved ones out of pure obligation to this mainstream holiday.

The Greeting Card Association states that about 190 million Valentine’s Day cards are sent each year, and that does not include the millions of cards exchanged by kids as well.

Furthermore, it is the most prosperous holiday for florists, with about 224 million roses grown every year before February. Data shows that 64 percent of men and 36 percent of women buy flowers for Valentine’s Day, according to the IPOS-Insight Floral Trends Consumer Tracking Study.

These costly expectations directly and indirectly affect relationships as well.

About six million people anticipate or plan a marriage proposal on Feb. 14 every year, creating a stigma that pressures many couples into making major decisions on a deadline. Coincidently, condom sales rapidly increase right before the holiday. According to the Indo-Asian News Service, “sales of condoms increase up to 20 percent during Valentine’s week,” which coincides with the supposed $15 million spent on infertility and pregnancy tests the following weeks after, according to The Nielsen Company.

All expenses aside, the holiday’s significance in American culture, and in cultures around the world, is founded in the precious nature of relationships—whether with a significant other, family, friends, or even colleagues and classmates.  While mainstream media have created a multimillion-dollar industry out of the holiday, Valentine’s Day is a reminder to make sure the people who mean the most in your life know they are loved. Maybe advertisers and corporations do have the right idea, after all.

CVS switches to tobacco-free stores

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By SOFIA ORTEGA

The second-largest drugstore group in the country, CVS, announced that by October the company would stop selling cigarettes and other tobacco products in all of its stores. And it has generated quite a bit of news media attention this week.

“We came to the decision that cigarettes and providing health care just don’t go together in the same setting”, stated Larry J. Merlo, CEO of CVS Caremax.

It is projected that the company will take away 17 cents in profits per share of stock a year. To make up the revenue loss, the company will start this spring a smoking termination program to help Americans get over the habit.

In 2000, the company opened MinuteClinic, the first retail medical clinics in the country, offering its service in more than 800 CVS pharmacies. As it is hoping to open 700 more by 2017, it was crucial to position CVS Caremax tobacco-free to seek the growth of the company.

ChangeLab Solutions, a nonprofit organization that offers legal evidence about public health stated that more than 400,000 American die each year due to smoking, and that unfortunately, the rate has remained stagnant over the last ten years.

But, will CVS decision help lower the smoking rate in the U.S.?

Unfortunately, most of the tobacco purchase is done in convenience stores. Therefore, CVS’s contribution to promote a tobacco-free generation will mostly mark their transition to be recognized as a health care company rather than just another drugstore.

However, the decision of a leading pharmacy chain to stop the sale of tobacco products will probably resonate in different states to independent groups as an opportunity to fight for a law that prohibit drugstores from selling these products.

Most Americans have a drugstore only five miles from home. Since studies have shown that -the more tobacco retailers, the higher smoking rates-. Prohibiting the sale of tobacco in drugstores will automatically reduce smoking rates.

A pharmacy’s goal should be to look for the health of the population; therefore, their stock should go according to the company’s goal and not obstruct it.

As President Obama said, CVS decision will help advance the “efforts to reduce tobacco- related deaths, cancer, and heart disease, as well as bring down health care costs- ultimately saving lives and protecting untold numbers of families from pain and heartbreak for years to come.”